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LEAN manufacturing in the pharmaceutical sector

J&M’s ‘Pharma Study’ has examined the supply chain in the pharmaceutical industry – and diagnosed significant variation. Where logistical and production costs are concerned, the variation can be as much as 46 percent.

As part of the study, J&M surveyed a hundred CEOs, CIOs, logistical and production staff and supply chain managers within the sector. One key finding was the fact that although the average lead time in medicinal production is eight weeks, most manufacturers are able to guarantee supply within 48 hours. Companies can only achieve this by building up large warehouse stocks.

The J&M study also found that set-up times in pharmaceutical companies are generally ten times higher than those in automobile manufacturing. Even within the sector, however, the discrepancies can be considerable: logistical and production costs for the leading companies, in relation to sales revenue, were as much as 46 percent below the average level. For many companies in the pharmaceutical industry, production continues to revolve around large numbers of units, rendering the manufacture of smaller batches inefficient.

For this reason, Karsten Brockmann, responsible partner at J&M for the pharmaceutical industry, recommends the implementation of LEAN manufacturing along the lines demonstrated by the automotive sector – an approach that would also simplify quality assurance.

You can order the full Pharma Study and its results (in printed format) for €495 plus VAT. Simply complete the following form: